Current NM Budget outlook is $94 million in the hole despite record surplus

Santa Fe, NM- The Legislative Finance committee releases to staff a daily update on the state’s fiscal health as the session budget is drafted and moves through the legislative process. House Republican leaders have become concerned following a recent summary that was shared, revealing the precarious finances of the New Mexico General Fund even in the state’s second record surplus year. The state budget, in its House approved version, appropriates over $8.1 billion and projects revenues will be $7.9 billion. The financial summary makes clear that the state’s operating reserve will be $94 million in the red, creating a potential constitutional crisis and leaving the state in a dangerous budget position given New Mexico’s undiversified economy.

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